Guarantees of origin specify the energy source from which electricity is produced. They serve to enable users of electricity to support the production of energy with renewable sources within the definition of the EU directive 2009/28/EC.

Landsvirkjun is involved in various social projects and follows a policy of providing grants to good causes. The company has supported a number of causes, including various charities, cultural and educational projects and sports and leisure activities.

Landsvirkjun has erected it's first wind turbine in an area known as "Hafið" near Búrfell Power Station. Thanks to rapid technological development wind energy is fast becoming a viable option when it comes to environmentally friendly power.

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Cash flow from operating activities increases

Key figures from the interim financial statements

Operating revenues amounted to USD 206.7 million which is an increase of 1.9% compared to the same period last year.

EBITDA amounted to USD 165.3 million. EBITDA ratio is 79.9% of turnover, compared to 80.8% for the same period last year.

Profit before unrealised financial items amounted to USD 67.1 million, compared to USD 47.7 million for the same period last year.

Loss for the period, taking into account unrealised items, amounted to USD 52.2 million but for the same period last year there was a profit of USD 9 million. The loss is mainly explained by fair value changes in embedded aluminium derivatives in energy agreements which amounted to USD 169.5 million, expensed in the period.

Cash flow from operations amounted to USD 134.4 million which is an increase of 13.8% compared to the same period last year.

Net liabilities decreased by USD 30.1 million from the beginning of the year and amounted to USD 2,405.5 million at the end of June.

Hordur Arnarson, the CEO:

“The Company’s basic operation, generation and delivery of electric power, was successful throughout the first six months of the year and there was an increase in energy sales to Landsvirkjun’s customers by 5% or 300 GWh when compared to the preceding period. The Budarhals Hydropower Project is proceeding well and is on schedule. Construction work began on the project three years ago and is now in its final stages.

The results of the first six months of the year are satisfactory considering the present day world economic situation. We are pleased to see the increase in cash flow from operations reflecting the Company's strength and ability to meet its obligations. The Company's net liabilities continue to decrease by USD 30 million. The Company's net liabilities have decreased in total by USD 418 million in the last four years, which is a positive development. However, it is important to continue along the same course with regard to the Company's leverage.”